Gold scams and bullion fraud

What counts as a gold scam

A gold scam covers any dishonest tactic that misleads you about gold or precious metals, this includes selling fake or overpriced bullion, or offering storage or returns that are invented. When you see the word "bullion," it refers to gold or silver bars or coins traded mostly for their metal value, not for looks or collector value.

The gold market moves both ways. If you buy or hold gold, losses are possible, depending on timing and dealer pricing. You’ll find up-to-date rates on the gold price page; keep in mind, though, dealers usually build a margin into their buy and sell rates, so their terms matter before you pay.

Here’s what comes up often: bars made with a gold layer over cheaper metal inside, sites or shops posing as legitimate dealers while simply not delivering, or sales calls insisting you must buy within hours to secure a special price. These are frequent warning signs.

Checks to make on a dealer before you pay

• Check that the business is listed on the official company register. If there's a regulator involved, check their register as well. You’ll find instructions at how to check if a company is licensed.
• Look for a genuine business address and actual contact details, not just a web form or generic number.
• Ask for a refining certificate and an assay certificate for each piece, compare the details to the marks on the gold itself.
• Don’t skip the price check: compare the deal to the published gold market rate and ask what you’ll really pay, including margins, fees, and delivery.
• Only pay by a traceable bank transfer to the official company account. Cash or cryptocurrency paid to someone’s personal wallet or name is a major red flag.

Reviews can help, but they’re easy to manipulate. Take them as just one small factor.

Unallocated storage and other schemes

Allocated storage means you have particular bars or coins, logged to your name with their serial numbers. Unallocated means you just have a claim against the provider; specific gold isn't earmarked, so you rely on the company’s records. If the business folds, you could end up lower in line, possibly getting little or nothing.

If you’re shown promises like fixed returns, free storage or a guaranteed buy-back, slow down. Find out who actually holds the metal, where it’s stored, if external audits are done, and if the company is regulated. Your holdings may not qualify for investor compensation schemes, so study those terms in detail.

A hypothetical example of a discount offer

Imagine someone offers to sell you ten one-ounce gold coins for 15 percent under the market rate, and says you have to advance payment to a personal account right away to lock the price. A real dealer expects a transfer to the company account, not to a person, and does not put you under pressure to act fast. In this example, the best choice is to step back, use the official register to check the business and, if there are signs of fraud, submit a report to the police.

Frequently asked questions